Global Shares Fund

Overview and Investment Objectives

Date:  Mon 18 November, 2019 |   Price:   3.1684

Clarity Funds Management Limited was established in 2007 and now offers eight investment funds. Clarity has the ability to appoint external investment managers or advisers.

Objective: The Fund will provide actively managed exposure to international equities, and aims to generate a better return than the benchmark over the medium to long term (five years or longer).

Strategy: We use a global investment manager for this Fund, being MFS. Clarity has engaged MFS through its Australian entity, MFS International Australia Pty Limited (MFS Australia). MFS use a mix of fundamental and quantitative analysis to select companies.

Benchmark: MSCI All Country World ex-Tobacco Index (net dividends reinvested) in New Zealand dollars with 50% hedged to the New Zealand dollar.

About MFS: Established in 1924, MFS Investment Management (MFS) is an active, global asset manager with investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto. Our investment mandate combines MFS’ fundamental and quantitative research, focusing on high quality, large-cap global companies selling at reasonable valuations.

Holdings: The Fund invests in a portfolio of well-diversified global securities listed on sharemarkets around the world. These assets may include listed equities and exchange traded funds, as well as currency positions and cash. Securities of companies which are traded or due to be listed on international stock exchanges may be considered for inclusion in the Fund. As the Fund is actively managed, the holdings may differ considerably from the relevant benchmark index. The Fund’s custodian holds the assets directly.

Suitability: This Fund may be suitable for those investors who are comfortable with a higher risk in the short-term for improved longer-term returns.

The target asset allocation ranges shown below are the expected average asset mix of the Fund over the long term. The Fund will be managed within the given ranges.


 
Asset Sector Target
Asset
Allocation %
Range %

Cash and cash equivalents

   Including short-term securities and deposits and currency hedging

2 0 - 5

New Zealand Equities

   Any company listed on the NZX Stock Exchange

0 0 - 10

Australian Equities

   Any company listed on the Australian Stock Exchange

0 0 - 10

International Equities

   Any company listed on any other recognised Stock Exchange

98 80 - 100

Listed Property

   Any property company listed on the NZX Stock Exchange or Australian Stock Exchange

0 0 - 10

Other Assets

   Via exchange traded fund(s) (ETF)

   An ETF is a marketable security that tracks published market indices

0 0 - 5
  100  

The Fund is typically fully invested in equity securities, either directly or via investment in other funds. We may also participate in underwriting and sub-underwriting contracts for issues of permitted equity securities. 

Hedging: The foreign currency exposure arising from overseas equities will be partially hedged to the New Zealand dollar to reduce the impact of currency fluctuations. Please refer to the Currency Management Section of the SIPO for further information.

Distribution: We do not make any cash distributions from the Fund.

Clarity Funds Management Limited is the issuer and manager of the Fund.  We work together with The New Zealand Guardian Trust Company Limited, our Supervisor, to act in the best interest of investors.

Fund application money and investments are held by the Supervisor or their appointed custodian. The Fund has an independent registrar and an administrator who sets the daily price.  The Fund is audited annually.

The Fund is governed by the Trust Deed dated 12 August 2019 and the Establishment Deed dated 15 March 2017. The Fund is established within a registered managed investment scheme under the Financial Markets Conduct Act 2013 (FMC Act), scheme number SCH10600 (Scheme). The operation of the Scheme is governed by the FMC Act.

You can download a copy of the Product Disclosure Statement and Fund Update below for more detailed information about the Fund and for the Fund’s application form.

You can review a copy of the Trust Deed, Product Disclosure Statement and other important Scheme documents at any time by either contacting us or electronically on the Scheme's register on www.business.govt.nz/disclose.

Quarterly Fund Update | Monthly Fund Commentary |  Product Disclosure Statement |   Other Material Information  |  Application Form  |  Annual Report | Additional Funds Form | Redemption Form
Statement of Investment Policy and Objectives

Monthly Fund Commentary

This commentary provides you with information about the Fund.

Fund Commentary

Quarterly Fund Update

This update provides you with information about the Fund including its performance and investment mix.

Quarterly Fund Update